Vietnam Central Bank new regulation: International encryption transactions over 1000 USD must be reported, financial center supervision upgraded.

The State Bank of Vietnam (SBV) recently released the latest draft decree, providing comprehensive regulations regarding the establishment and operation of banks, foreign exchange management, and anti-money laundering and counter-terrorism financing measures for international financial centers. One of the most noteworthy new regulations is that international electronic remittances of 1,000 USD (including Crypto Assets transactions) will be subject to mandatory reporting. This move is seen as an important step for Vietnam to strengthen the regulation of capital flows and reduce the risk of cross-border capital outflow.

Draft Background: AML and Financial Security are Equally Important

The draft legislation aims to ensure that international financial centers attract capital inflows while preventing risks such as Money Laundering, terrorist financing, and the proliferation of weapons of mass destruction.

SBV clearly pointed out that although Vietnam is actively building an international financial center, it must adopt international standards in its institutional design to ensure financial security and compliance.

1000 USD report threshold: Scope and execution details

According to Article 127, Paragraph 4 of the draft:

1. International electronic remittances (including Crypto Assets transactions) over 1000 USD must be reported to the financial center.

2. Most transactions will be processed through global payment systems such as SWIFT, and the reporting system will align with international standards.

3. The current notification No. 09/2023 has set the reporting threshold for international transactions at 1,000 USD and for domestic transactions at 500 million VND (approximately 20,000 USD). The new regulation will directly extend to international financial centers.

SBV stated that after the financial center officially operates, it will flexibly adjust the reporting threshold based on data scale, risk level, and actual circumstances.

Impact on Crypto Assets and Cross-border Transactions

The regulation means:

1. Cryptocurrency exchanges and financial institutions must submit detailed reports when handling international transactions of 1000 USD or more.

2. For users who frequently engage in cross-border encryption transactions, transparency and compliance requirements will significantly increase.

3. Helps prevent capital flight and illegal fund transfers using Vietnam’s financial center.

Although this move may increase compliance costs, it also helps enhance the credibility of Vietnam’s financial center in the international market.

Cross-department collaboration: Strict regulatory network

The draft clarifies the main entities responsible for AML and the collaboration mechanisms:

Central Bank: Formulate and Implement Regulatory Standards

Central supervisory agencies, Ministry of Public Security, Ministry of Defense: Collaborative monitoring and law enforcement

Relevant departments: provide technical and legal support

In addition, central bank members are not allowed to mobilize funds to organizations or individuals in non-member countries, nor provide special credit or central bank services, to prevent regulatory arbitrage.

Future Outlook and Market Reaction

SBV emphasizes that the new regulations aim to prevent risks rather than hinder capital inflow. In the future, as data from the financial center’s operations accumulates, the reporting thresholds and compliance rules may be further optimized.

For the crypto assets industry, this means that Vietnam will become one of the markets in Asia with a higher degree of compliance, which will help attract international investors who value regulatory transparency.

Conclusion

Vietnam’s central bank has extended the $1,000 international transaction reporting threshold to the Crypto Assets sector, marking the country’s active efforts to build a robust AML and cross-border capital regulatory system while creating an international financial center. For the crypto market, this is both a challenge and an opportunity to enhance market trust.